First time applications for unemployment benefits slipped more than expected last week to lift the markets to a higher open with the Dow rising 33 points to 12,530. Nasdaq added 2 points to 2853.

On the upside

Hewlett-Packard (NYSE: HPQ) reported lower second quarter revenue and earnings but the results beat expectations and the company announced plans to eliminate 27,000 positions in order to save $3 billion per year.

Pandora Media (NYSE: P) widened first quarter losses but the results were better than expected and the online radio service forecast full year results ahead of estimates.

Airline stocks were upgraded on lower fuel costs and strong demand. Shares of Delta Air Lines (NYSE: DAL) and US Airways Group (NYSE: LCC) rose.

On the downside

Analysts downgraded NetApp (Nasdaq: NTAP) after the company forecast first quarter results well below expectations.

Tiffany & Co. (NYSE: TIF) reported flat first quarter earnings that missed estimates and cut its full year earnings and revenue guidance.

A Seeking Alpha contributor wrote that EMC (NYSE: EMC) had an upside potential of 10% but the stock price fell.

In the broad market, declining issues outpaced advancers by a margin of nearly 5 to 4 on the NYSE and by a more than 7 to 5 on Nasdaq. The Russell 2000 which tracks small cap stocks slipped 2 points to 763.